In India, two banks currently offer the scheme — Citibank and Kotak Mahindra Bank — jointly with CPP Assistance Services Pvt Ltd, a UK-based firm. Card Protection Programme (CPP) is one that assists customers by blocking all cards — debit and credit — in case of theft and loss, both before and after reporting. CPP also assists customers with emergency cash, travel and hotel assistance, thus taking care of all their needs in any exigency.
Coverage
Customers can sign up for any number of cards and of any bank for the programme.
Under the two plans offered by CPP, for an annual fee of Rs 950, customers can get coverage of up to Rs 50,000 of fraudulent transactions before notification. For Rs 1 lakh coverage, the annual fee is Rs 1,250. Once the cardholder signs up for the scheme, transactions done seven days prior to the date of reporting, are covered.
In case transactions occur after notification of the theft or loss, the coverage is as high as Rs 15-20 lakh.
Kotak Bank launched the scheme about two weeks ago as a pilot project and over 1,000 of the bank’s existing cardholders have already registered for the scheme, said Mr Subrat Pani, Business Head (Cards), Kotak Bank.
e-Commerce frauds
The bank already offers a protection programme for its Platinum and Signature credit cards, he said.
Kotak Bank is looking at a card base of 2.5 lakh by 2009. The next step for the bank is to cover e-commerce frauds that happen in internet transactions.
Citibank also launched a similar scheme earlier this month. A press release announcing the launch of the programme had quoted Mr Sandeep Bhalla, Business Manager (Cards), Citibank India, as saying, “Regulators have strongly recommended that banks introduce a cover to take care of the liabilities arising out of lost cards, and Citicards has provided such a solution to our customer base”.
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